Mirae Asset Emerging Bluechip: Good for midcap exposure

Arnav Pandya

Inception: July 2010

Assets under Management: Rs 140 crore at the end of September 2013 

Fund Manager: Neelesh Surana

Mirae Asset Emerging Bluechip Fund’s aim is to generate income and capital appreciation from a diversified portfolio predominantly investing in Indian equities and equity related securities of companies which are not part of the

top 100 stocks by market capitalization and have market capitalization of at least Rs. 100 crore at the time of investment.
From time to time, the fund manager may also seek participation in other Indian equity and equity related securities to achieve optimal portfolio construction. The Scheme does not guarantee or assure any returns. Financial Advisor Arnav Pandya recommends investing in the fund for midcap exposure as it has been performing consistently.

Analysis

• The funds looks to invest in mid cap shares that are not in the top 100 shares by market capitalisation and which also are not too small in size as they should have a market cap of more than Rs 100 crore. The fund had the

highest exposure to consumer non durables at 13 percent of the portfolio at the end of March 2012.

• Banks, Pharma and auto ancillaries were some of the other leading sectors in the portfolio.  There was a disciplined approach to investing as none of the individual stocks in the portfolio had an exposure of more than 4 percent.

• Federal Bank was the top stock with Amara Raja Batteries, Titan Industries, Apollo Tyres, Gateway Distripacks and Eicher Motors being some of the other leading ones. The CNX Midcap Index was the benchmark for the fund

and the fund was an outperformer over the benchmark over the last one year.

• Six months later there was a change in the sector position on the portfolio as banks were now at the top with Pharma, auto ancillaries and consumer non durables also having a significant share.  The portfolio turnover ratio had dropped below the 1 time mark.

• The top stock in the portfolio was Amara Raja Batteries with Federal Bank, Divis Labs, Gateway Distripacks, IPCA Labs,  ICICI Bank and Apollo tyres being the other leading holdings.  The fund remained an outperformer over the one and two year time periods.

• The fund continued with its portfolio positioning and banks was still the top sector at the end of March 2013. Pharma, consumer non durables and auto ancillaries completed the top list for the fund.

• The portfolio turnover ratio was now steady at 0.83 times and Federal Bank was the top individual holding in the portfolio.  Amara raja Batteries, ICICI Bank, ING Vysya Bank, IPCA labs and Divis Labs were some of the other leading stocks.  The fund remained an outperformer over the one and two year time periods.

• At the end of September 2013 pharma was now the top sector in the portfolio with banks not being far behind.  Consumer non durables, auto ancillaries and software were some of the other top sectors. 

• Tech Mahindra was now the top holding with IPCA labs, Amara Raja batteries, ICICI Bank, Divis Labs, Federal bank and ING Vysya Bank being some of the other leading stocks. The fund was a comfortable outperformer over the one and three year time periods ended September 2013.

• Investors looking for a mid cap exposure can consider investing in this fund as it has been able to maintain consistency and outperformance over a period of time.